Acquisition Will Provide Secure Communication Systems with Greater Diversification of Offerings to Commercial Customers
LOS ANGELES – January 7, 2014 – Vance Street Capital LLC, a Los Angeles-based private equity firm, announced today that it has acquired Tactical Micro from Relativity Capital, an Arlington, Virginia-based private equity firm. Terms of the transaction were not disclosed. Tactical Micro is the third add-on acquisition for Secure Communication Systems, a designer and manufacturer of rugged computer and information assurance systems.
Based in Fredericksburg, Virginia, Tactical Micro is a premiere provider of high-end training, instrumentation and surveillance solutions for military and commercial customers. The company’s products are used in support of military training, metropolitan security systems and other complex surveillance solutions.
“Tactical Micro has an impressive track record of consistent revenue growth,” said Allen Ronk, CEO of Secure Communication Systems. “The success of the company is a testament to its talented management team, its dedicated employees and innovative technology. We believe that Tactical Micro complements our current product offerings and we look forward to working together to further grow our businesses.”
“This acquisition is a strong strategic fit for Secure and we expect Tactical Micro’s transition to be seamless,” said Brian Martin, principal at Vance Street Capital. “Having Tactical Micro on board will help Secure further diversify its end markets.”
Tactical Micro’s founder and president, John Moulton will retain an ownership stake in the company and will continue to serve as president.
“We are excited to partner with Secure and Vance Street Capital,” Moulton said. “Secure and Tactical Micro share strong engineering backgrounds and a commitment to excellence. As a division of Secure Communication Systems, we will be well positioned for the next phase of our company’s evolution.”
Fifth Third Bank provided senior debt financing for the transaction and Babson Capital provided mezzanine debt financing for the transaction. O’Melveny & Myers LLP acted as legal advisor to Vance Street Capital and Secure Communications. Relativity Capital and Tactical Micro retained KippsDeSanto & Co. as investment banker and Hogan Lovells as legal advisor.